Re:Two thought experiments to evaluate automated stablecoins
by Thorrez on Friday May 27, 2022 @02:36AM
(#31526640)
Can they put it in a bank? Do banks have maximum account sizes?
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Re:Two thought experiments to evaluate automated stablecoins
by pjc50 on Friday May 27, 2022 @04:03AM
(#31527158)
In practice, yes. Because you're just pushing the backing question on to them; banks rely on withdrawals being de-correlated. Not everybody takes their money out at once. A single bank-sized account ruins that model.
Also, the larger it gets, the bigger the money laundering question gets. "We're providing seventy billion dollars of financial services to unknown parties" is not a sustainable position with a reputable bank. Tether have already got banned from several banks and are being very cagey about who they bank with.